Marvell Technologies MRVL, Is it too expensive?
Marvell Technologies reported another good quarter, but is it too expensive to buy. At the current PE of 70, it is twice as expensive as the average PE in the industry and three times as expensive as the S&P. This stock is price to perfection and any misstep can destroy the stock. On the other hand, the company’s management has consistently deliver quality results and there is no reason to doubt that they won’t continue to grow at a strong pace. Also from the recent conference call I did not hear any strong competitors are invading its product space. Assuming MRVL hit its 2006 earning estimate, the stock will double from its current level. It is definitely a risky investment, but I think the reward is worth the risk.
It's not when you buy. It's when you sell!
